The Peterson Foundation, one of the last voices calling for fiscal restraint, bemoaned the budget deal: “Another $400 billion in debt is the worst possible holiday gift for our children,” the group said. “We should be looking at ways to reduce our interest burden so that we can fund important national priorities.”
That sounds awfully familiar. One of Peterson’s tweets last month was flooded with replies of the “OK Boomer” meme. It’s one example of how MMT has a passionate and growing base of supporters who are tired of the way Washington has operated for decades.
For all its connotations with Sanders, Ocasio-Cortez and democratic socialism, Wray doesn’t see MMT as some sort of showdown with capitalism. Quite the opposite — he imagines what a World War II-like effort would look like if instead of producing guns and bombs, the government turbocharged renewable energy projects that would last for generations.
The past 10 years have been defined by relatively restrained fiscal policy and unprecedented stimulus measures by central banks. If the 2020s turn out to be the decade that governments step up to the plate, what might America look like come December 2029?
“Last time around, in spite of all the sacrifices of the war, we had the golden age of U.S. capitalism,” Wray said. “What are we going to have after this 10-year period? There’s no reason to believe it’s not going to be this new era of high productivity with environmental sustainability, high wages and full employment.”
This opinion piece was provided by Bloomberg News.